Gabon - Economic and Financial Reform Support Programme

The proposed operation concerns a Euros 200 million ADB loan to the Republic of Gabon to finance the Economic and Financial Reforms Support Programme (PAREF). PAREF is aligned with the Emerging Gabon Strategic Plan (PSGE) and the Social Pact which both present the 2025 development vision with a focus on three strategic thrusts: i) consolidation of the foundations of emergence, ii) development of the pillars of emergence and (iii) shared prosperity. This is the first of two programme-based General Budget Support (GBS) operations covering the 2016-17 period as planned under the CSP, for an indicative total financing of Euros 500 million supporting the implementation of reforms aimed at consolidating public finances, structural transformation of the economy and unlocking Gabon’s significant growth potential. This support follows upon a request submitted to the Bank by the Government of Gabon in April 2016 in a context marked by a deterioration in the country’s budgetary situation due to the steady drop in oil prices. It is justified by the fact that it will help to create the fiscal space needed for the restoration of macroeconomic stability and continued sustainable implementation of the Emerging Gabon Strategic Plan (PSGE). The operation responds to Gabon's need to strengthen the foundations for diversified, sustainable and inclusive economic growth and to consolidate its reserves with the BEAC. The design of PAREF builds on two complementary guiding principles in response to the following challenges: (i) improving fiscal consolidation to restore macroeconomic stability; and (ii) strengthening economic diversification to foster inclusive growth.